The remediation — which includes the removal of lead-based paint — is a precursor to construction, she said.

Although the building was acquired in April, developers had been waiting on a ruling from the Internal Revenue Service regarding federal historic preservation tax credits.

The Heer’s financing plan includes about $5 million in national historic tax credits.

Smith said Kansas City-area developer Jim Nichols, of the Dalmark Group, still has a couple of financing obstacles remaining. Jim Nichols is Zac Nichols’ father.

“But I think it is a good sign that they are starting on the environmental remediation,” she said. “It indicates they believe they can work through those final financing hurdles.”

Asked if he had any concerns about obtaining all of the necessary financing, Nichols replied: “No.”

Construction is expected to last 12 to 14 months, and developers plan to have the building open by September 2015 — the building’s centennial.

The $15.7 million plan for the Heer’s Building calls for market-rate apartments with commercial space on the first floor. Apartments on the mezzanine level and second floor will be marketed to young professionals or college students, but lofts on the upper floors will feature more amenities, along with higher rents.

Other planned features include a clubhouse and rooftop pool above the northern portion of the building and basement parking.